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Take 5: 5 Ways to Lower Your Shipping Costs

by Editorial Staff--South Jersey Biz

There’s a seemingly endless list of costs when it comes to running a business, but there are many that you might not realize are flexible. According to Philip Claghorn, president of Transense, LLC in Turnersville—an exclusive agent for MESCA Freight Services—the following are five simple ways your company can achieve significant, immediate shipping and freight cost savings success.

1. Consult a freight management company and ask for a no-cost evaluation. A logistics management company that specializes in freight will review areas of your program such as carrier selection, assist with freight negotiations, review pricing and accessorial charge inconsistencies, and provide a more efficient shipping process.

2. Ensure proper planning and implementation of shipping guidelines within your company. Review the transit times of each of your carriers with your customer to know service options before calling an expedited carrier. Many of them already provide next-day service as part of their regular shipping options. The use of a transportation management system (TMS) will allow customers to receive service options immediately to identify costs of expedited and last-minute orders. Establishing a daily shipment order cut-off will reduce these frequent expedited orders and charges.

3. Review all supplier and vendor shipping arrangements and freight invoices. Incorrect assessment of classifications, reweighing of shipment weight as well as additional overcharges and inconsistent shipment and accessorial charges can cost companies thousands of dollars in additional charges. Employing a pre- and post-freight bill auditing company can resolve these costly mistakes.

4. Always call a broker or carriers for quotes on shipments that are five pallets or greater. A savings of as much as 48 percent can be found simply by calling for a “spot quote.” A reputable brokerage company will have the experience to advise the best and most economical service options available.

5. Consolidate shipments when possible. Evaluating the frequency of shipments between two points and consolidating them can provide tremendous immediate cost savings. Working with your customers to identify and implement a weekly ship day will allow you to consolidate shipments to some of your larger customers and save greatly.

Published (and copyrighted) in South Jersey Biz, Volume 4, Issue 3 (March, 2014).
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